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| 5 Expenses |
|
2017
Rm |
|
|
Restated
2016
Rm |
|
|
|
|
|
|
|
|
| 5.1 Payments to other operators |
|
2 618 |
|
|
2 793 |
|
| Payments to other operators decreased mainly due to the lower traffic volumes. |
|
|
|
|
|
|
| 5.2 Cost of sales |
|
6 498 |
|
|
5 011 |
|
| The increase in cost of sales is largely attributable to the increase of IT service and the increase in the sale of high-end devices as well as the effect of the full year consolidation of BCX. |
|
|
|
|
|
|
| Change in comparatives |
|
|
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|
|
|
| Refer to note 2.3. |
|
|
|
|
|
|
| 5.3 Employee expenses |
|
10 562 |
|
|
12 165 |
|
| The decrease in employee expenses is mainly due to the decline in headcount and the lower VSP/VERP expense compared to the prior financial year. |
|
|
|
|
|
|
| Change in comparatives |
|
|
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|
|
| Refer to note 2.3. |
|
|
|
|
|
|
| 5.4 Selling, general and administrative expenses |
|
7 237 |
|
|
5 796 |
|
| The increase in selling, general and administrative expenses is mainly due to the full year inclusion of BCX and increased outsourcing costs. |
|
|
|
|
|
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| Change in comparatives |
|
|
|
|
|
|
| Refer to note 2.3. |
|
|
|
|
|
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| 5.5 Service fees |
|
2 869 |
|
|
2 965 |
|
| The decrease is mainly due to lower company transformation and property management expenses. |
|
|
|
|
|
|
| Change in comparatives |
|
|
|
|
|
|
| Refer to note 2.3. |
|
|
|
|
|
|
| 5.6 Operating leases |
|
1 045 |
|
|
1 100 |
|
| The decrease in operating leases is mainly due to a decrease in the number of vehicles leased. |
|
|
|
|
|
|
| Change in comparatives |
|
|
|
|
|
|
| Refer to note 2.3. |
|
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|
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|
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| 5.7 Depreciation, amortisation, impairment and write-offs |
|
5 661 |
|
|
5 498 |
|
| Depreciation of property, plant and equipment |
|
4 752 |
|
|
4 448 |
|
| Amortisation of intangible assets |
|
766 |
|
|
880 |
|
| Write-offs, impairment and losses of property, plant and equipment and intangible assets |
|
143 |
|
|
170 |
|
The increase is due to accelerated depreciation of old technology as we intensify the roll-out of fibre and LTE as well as higher asset
write-offs.
As a result of the transformation programme, the group reassessed the useful lives of certain technologies to address the challenges within
the competitive market and IP-based products and services. The reassessment of useful lives had the effect of increasing the depreciation
and amortisation expense for the year ended 31 March 2017 by R325 million (2016: R192 million). Depreciation and amortisation for each year
of the remaining useful lives of the individually reassessed equipment will be significantly lower.
Change in comparatives
Refer to note 2.3